The European Bank for Reconstruction and Development (EBRD) on Thursday lowered its forecast for Macedonia's economic growth in 2016 to 2.1% from 3.2% growth projected in May, reflecting risks from the ongoing political crisis in the country.
"The year 2016 as a whole is likely to see a significant drop in GDP growth to 2.1%, but with a likely rebound to 3.0% in 2017 on the back of continued robust consumption and investment," the EBRD said in its latest Regional Economic Prospects report.
In the previous report published in May, the bank lowered its 2016 growth outlook on Macedonia to 3.2% from 3.5%.
Macedonia's economy is likely to return to 3% growth next year the bank said, adding that "the political situation in the country continues to pose a significant downside risk to this growth outlook".
In its previous report, the bank expected Macedonia's gross domestic product (GDP) to grow by 3.5% in 2017.
On December 11, Macedonia will hold early elections
Source: SeeNews
